Best income protection insurance in the UK 2026

Do I need income protection insurance? 

Income protection insurance pays you a regular income if you’re unable to work due to illness or injury, typically covering 50% to 70% of your salary, and is usually paid monthly. 

It’s designed to help you keep up with essential costs such as rent or mortgage payments, bills and everyday spending if your income stops.

It’s worth considering if you rely on your income to cover monthly expenses and wouldn’t be able to manage for long without it, particularly if you have limited sick pay or are self-employed. 

How much does income protection cost in the UK?

The cost of income protection depends on your age, health, job and the level of cover you choose. 

To give an idea of how much you might pay for income protection, we’ve used quotes from a range of major insurers based on the following example:

• 30-year-old non-smoker
• Administrative role
• No health issues
• £1,500 monthly benefit (based on a salary of around £45,000)
• Three-month deferral period (how long you wait before payments start)
• Cover to age 65.

We’ve shown both non-indexed and index-linked policies below. Index-linked cover costs more, but increases the value of your payout over time to help keep pace with inflation.

In this example, income protection starts from around £5 to £6 per month for short-term cover, rising to around £13 to £22 per month for full-term policies, which can continue paying out until retirement if you’re unable to work. 

Shorter payout periods are generally cheaper, while full-term cover costs more but offers longer-lasting protection if you’re unable to work for an extended period. 

What does income protection insurance cover?

Income protection insurance covers a wide range of conditions that leave you unable to work, including:

• physical illnesses, such as cancer or heart disease
• mental health conditions, such as stress or depression.

Most policies don’t focus on specific diagnoses. Instead, they’re based on whether you’re unable to do your job due to illness or injury. This is different from life insurance, which pays out a lump sum if you die.

There are some important exclusions to be aware of. Pre-existing conditions are usually not covered, and income protection won’t pay out if you’re made redundant.

What do insurers offer? 

LV (Liverpool Victoria)

LV is a UK mutual insurer offering a range of protection products, including income protection.

Its income protection policies typically cover up to 60% of your earnings if you’re unable to work due to illness or injury. Policies are based on an own occupation definition, meaning you can claim if you can’t do your specific job.

• Find out more about LV and its income protection policies using the service provided by LifeSearch.

Aviva

Aviva offers a range of protection products, including life insurance, critical illness cover and income protection.

Its income protection range includes Living Costs Protection, which pays a fixed monthly benefit of £500 to £1,500, and Income Protection+, which is available through advisers and offers either full cover to term or a 24-month payment term.

With Living Costs Protection, payments can start after a deferred period of 4 to 26 weeks and can last for up to 12 months per claim. Aviva says it can cover up to 90% of monthly take-home pay, capped at £1,500 a month. 

• Find out more about Aviva and its income protection policies using the service provided by LifeSearch.

Legal & General

Legal & General offers a range of protection products, including life insurance and income protection. 

L&G standard income protection cover pays up to 60% of gross annual income up to £60,000, then 50% of income above that, with cover lasting until age 70 or your chosen retirement age if earlier.

L&G also offers a lower-cost option called Low Start Income Protection, where the benefit for each claim can be limited to 12 or 24 months. Deferred periods of 4, 8, 13, 26 or 52 weeks are available.

• Find out more about Legal & General and its income protection policies using the service provided by LifeSearch.

Royal London

Royal London offers a range of protection products, including life insurance, critical illness cover and income protection. 

Its income protection policies can cover up to 65% of the first £60,000 of pre-tax earnings, plus 50% of the remainder, up to £250,000 a year. It offers both limited payment periods of one, two or five years and whole-term cover, with deferred periods of 4, 8, 13, 26 or 52 weeks.

Royal London also includes a back-to-work payment for some policies, helping with the transition back into work after a claim. On policies with deferred periods of 13, 26 or 52 weeks, this can be paid in the first and second months after returning to work.

• Find out more about Royal London and its income protection policies using the service provided by LifeSearch.

Vitality

Vitality offers a range of protection products, including life insurance, serious illness cover and income protection. 

Its income protection policies can pay up to 60% of gross salary, with cover available up to £1,500 a month without income verification or up to £8,000 a month if earnings are verified.

Vitality’s income protection is designed to pay a regular income if you’re unable to work because of illness or injury. 

One feature is that members can receive a Vitality income boost of up to 20% extra for the first six months of a claim, depending on their Vitality status before claiming.

• Find out more about Vitality and its income protection policies using the service provided by LifeSearch.

Zurich

Zurich offers a range of protection products, including life insurance, critical illness cover and income protection. 

Its income protection policies can cover up to 65% of the first £60,000 of gross income and 45% of income above that. Customers can choose cover that pays a monthly benefit until the end of the policy term or for a maximum of two years per claim.

Zurich says its cover is designed to support customers if they’re unable to work for a prolonged period due to illness or injury, with monthly payments starting after a chosen waiting period.

• Find out more about Zurich and its income protection policies using the service provided by LifeSearch.

What else does an income protection policy cover?

As well as replacing part of your income while you’re unable to work, some policies come with a few extra features that can make a difference if you need to claim. These vary between insurers, but may include:

• Hospitalisation benefit: some policies pay a proportion of your benefit if you’re admitted to hospital, even before your deferral period has ended.
• Waiver of premiums: you won’t need to pay premiums while you’re receiving payouts.
• Life cover: some policies include a small amount of life insurance, often equivalent to one or two years’ worth of premiums.
• Support when returning to work: if you go back to work on reduced hours or lower pay, some policies continue to pay a reduced benefit until your income recovers.
• No repeat deferral period: if you return to work and then fall ill again within a set period (often 12 months), some insurers will waive the deferral period so payments can restart sooner.

How to compare policies

Income protection policies can vary widely, so it’s important to understand what you’re getting before you buy. It’s worth comparing: 

• Payout percentage: most policies cover between 50% and 70% of your income. Higher cover means higher premiums, but also more financial protection if you need to claim.
• Deferral period: this is how long you wait before payments start after you stop working. Common options range from four weeks to 12 months. A longer deferral period usually reduces your premiums, so it’s worth matching this to any savings or sick pay you have.
• Policy length: some policies pay out for a fixed period, such as 12 or 24 months, while others cover you until you return to work or reach retirement age. Longer-term policies offer more protection but cost more.
• Definition of incapacity: this determines when a policy will pay out:
  • Own occupation pays out if you can’t do your specific job – these policies generally offer the most comprehensive cover.
  • Suited occupation may not pay if you could do a similar role.
  • Activities of daily living only pays out if you’re unable to perform basic tasks.
• Index-linked cover: some policies increase your payout each year in line with inflation. This helps protect the value of your income over time, particularly for long-term policies, but will also increase your premiums gradually.
• Additional features: some insurers include extras such as waiver of premiums, rehabilitation support or return-to-work benefits, which can make a difference if you need to claim.

Is income protection worth it?

Income protection is designed for one simple scenario: what happens if you can’t earn for months at a time.

If your finances depend on your income, it can act as a safety net, helping you cover essential costs while you’re off work.

It may be worth considering if:

• You don’t have enough savings to support yourself for an extended period.
• Your employer offers limited sick pay.
• You’re self-employed and wouldn’t receive statutory sick pay.
• You have ongoing commitments such as rent, a mortgage or dependants.

The main advantage is that it provides ongoing support, rather than a one-off payout. This can make a real difference if your recovery takes time.

However, it’s not for everyone. It won’t cover redundancy, and premiums can be relatively high depending on the level of cover you choose.

In practice, income protection works best as a long-term safety net, sitting alongside your savings and any sick pay to help bridge the gap if your income stops.

Does income protection ever pay out?

Yes. Income protection pays out a regular income if you’re unable to work due to illness or injury, but how much you receive and when payments start will depend on your policy.

• How much you’ll get: most policies pay out between 50% and 70% of your usual earnings. Payments are typically tax-free.
• When payments start: you’ll only receive payments after your chosen deferral period has passed. This can range from a few weeks to several months, depending on your policy.
• How long payments last: payments usually continue until you return to work, reach the end of your policy term or retire, whichever comes first. Some shorter-term policies only pay out for a fixed period, such as one or two years.
• What triggers a payout: you’ll need to meet the insurer’s definition of being unable to work, which is set out in your policy. This is why it’s important to understand how your policy defines incapacity before taking it out.

How to save on income protection insurance policies

If you’re considering income protection, there are a few practical ways to reduce the cost without cutting cover too far:

1. Pick a longer wait before payouts start: waiting 8, 13 or even 26 weeks before payments begin can reduce your premium, especially if you have savings or employer sick pay to fall back on.
2. Go for a shorter payout period: policies that pay out for one or two years are usually cheaper than those that cover you right up to retirement.
3. Only cover what you need: most policies cover around 50% to 70% of your income. Choosing less can cut costs if you just want to cover essential bills.
4. Take employer support into account: if your employer pays sick pay for three to six months, you may not need cover to start straight away or at as high a level.
5. Choose the level of cover carefully: ‘own occupation’ cover (which pays out if you can’t do your specific job) costs more than broader options like ‘suited’ or ‘any occupation’.
6. Shop around and compare policies: prices can vary a lot depending on your job, health and cover level, so check what’s included and any exclusions rather than just going for the cheapest option.

What does our expert say on income protection?

Dean Sobers, Which? insurance expert, says:

‘You can’t predict how your health could change during your working life – but you just need to check your savings to estimate the financial impact of being put out of work by illness or injury. 

According to the Resolution Foundation, about half of working-age families have less than three months' salary to get by on. We think most people should therefore consider income protection seriously, as it enables you to concentrate on your health and wellbeing, instead of worrying about being able to pay your bills. But the reality is it’s not widely owned. This, perhaps, is due to its costs, its relative complexity, and the fact that it isn’t something you’re ‘prompted’ to buy – like home and life insurance when taking out a mortgage or starting a family. 

As with all these kinds of cover, you’ll hopefully never need to claim on it – but the safety net is well worth paying for, and there are different options that could help tailor the price to your budget. Speak to an independent adviser to assess if it’s suitable for your needs.’ 

Looking for income protection insurance?

Find the right income protection policy using the service provided by LifeSearch.

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